KEY POINTS
- Orion expects Prieska copper production in Q3 2027.
- Glencore-backed funding for Prieska has received regulatory approval.
- Okiep drilling confirms high-grade copper mineralisation.
Orion Minerals is strengthening its corporate governance and operational systems as it moves closer to becoming a significant copper producer in South Africa.
The Johannesburg Stock Exchange-listed base metals company is developing two copper production hubs in the Northern Cape, the Prieska Copper Zinc Mine near Copperton and the Okiep Copper Project.
Orion, led by CEO Tony Lennox, said its transition from project development to mining and processing requires a stronger organisational structure built around experienced personnel, accountability, practical systems and adaptability.
The company is also increasing its focus on project execution, financing and construction as development work progresses across both projects.
Prieska moves closer to first production
The Prieska project is being revived after the historic mine produced about 430,000 tonnes of copper and one million tonnes of zinc between 1971 and 1991 under Anglovaal.
Orion expects to begin renewed production in the third quarter of 2027, with development now moving from planning towards executable construction and operational work packages.
The first phase will focus on the shallower and higher-grade Uppers resource. Dewatering of the mine’s historical underground workings is progressing alongside preparations for production.
The second phase will target the larger Deeps resource, with further dewatering, shaft rehabilitation and infrastructure development required before production can begin.
Orion has appointed Torque Africa as the drilling contractor for Prieska, while Enprotec has been selected to build, own, operate and transfer a concentrator capable of processing 20,000 tonnes of material a month.
Five deeper extension targets have also been identified for further exploration. Underground drilling is expected to test these targets as access to the workings improves, potentially increasing the resource base and extending the mine’s operating life.
A binding agreement announced in February for a $250 million copper and zinc concentrate prepayment from a Glencore subsidiary has received approval from the South African Reserve Bank.
Under the agreement, $40 million is allocated to the construction and startup of the Prieska Uppers operation, while the remaining $210 million is earmarked for the Deeps development.
Orion has also benefited from the partial conversion into equity of a loan facility provided by South Africa’s state-owned Industrial Development Corporation.
The company said value engineering has further improved the development sequencing for the Uppers project and supported the implementation of its first production phase.
Development and exploration are also progressing at the Okiep Copper Project, an area with a long history of copper production.
The Okiep district produced more than two million tonnes of copper over roughly 150 years, giving Orion access to established mining infrastructure, skills and geological knowledge.
Recent drilling at the Flat Mine East prospect has confirmed continued high-grade copper mineralisation. Results included an intersection of 7.88 metres grading 9.24% copper and another 3.33-metre intersection grading 17.12% copper.
The drilling has also confirmed continuity of the lower mineralised zone down dip.
Following the completion of definitive feasibility studies for the Prieska and Okiep projects in March 2025, Orion has focused on project execution planning and securing the funding needed to move both developments forward.
At Okiep, the company is assessing whether changes to mining methods, underground access and production sequencing could improve the economics of the Flat Mine North, Flat Mine East and Flat Mine South areas.
